21/8/2017-5

Cheung Kong “name” Li Ze giant: no intention to abandon the real estate industry will not reorganize or raise funds

In recent years, there have been many claims about “divestment” and “giving up property business”. Real Estate (1113) yesterday held a special general meeting of shareholders, with a large number of people through the re-“rectification” of the Yangtze River Industrial. Vice Chairman and Managing Director of the Group Li Zegai yesterday at the shareholders meeting to respond to shareholders questioning, the group did not intend to leave the real estate industry, in this name, no longer engage in restructuring. In the future, the non-real estate business is designed to allow the Group to see more space and more accurate, and it is not necessary to operate a business and to be affected by the change in the real estate cycle. Ming Pao reporter Chen Weishen

Li Ze giant yesterday, the shareholders and the media have said that there is no intention to leave the real estate industry. Deputy Managing Director Ye Dequan added that the Group’s total assets, 70% of the real estate business. According to the long real-time performance to give investors briefing data show that the current group of 73% of the income from the real estate business.

Li Zeju also said that the group name, no longer engage in restructuring, because it has done a lot of homework, Cheung Kong and the Yangtze River Infrastructure (1038) business and complement each other, no confusion, Cheung Kong will not reduce the dividend thereafter, and Have a steady income. At the same time, there is no overlap between Cheung Kong and the sister company and the business of the company. If you invest in new projects in the future, it will not be limited to certain countries and describe “one way” to make money for shareholders.

Investment in non-real estate to avoid the impact of real estate cycle, he said, Cheung has not left the real estate business plans to participate in real estate investment projects outside, you can provide space to the group to see more detailed and more accurate, will not be affected by the real estate cycle to buy land decision. In any case, they are engaged in non-real estate investment, in order to strive for long-term in the double-digit returns from each year. Which he also optimistic about the recent implementation of investment in Canada building equipment manufacturers Reliance.

In the acquisition of Reliance, Li Ze Ju that the deal can be given priority with the company strengths. If only a single project by the longevity of a single project risk is greater, the Yangtze River infrastructure has not enough funds to cope, so the two companies can complement each other. Reliance currently accounts for nearly half of the market share in Ontario, Canada. The business nature is between infrastructure and buildings. Therefore, the two companies can complement each other, have synergistic effects, share risk, and facilitate the acquisition of their own acquisition projects.

Revenue real estate projects look at the rate of return even if the real estate continues to continue to real estate industry, but Li Ze said that the property business, after all, affected by the cycle, so he bid on real estate projects before the rate of return to decide whether to go to the horse. For example, if the last year to buy land, the rate of return is inevitable lower. When asked about the Yangtze River infrastructure projects encountered in the future need to raise funds to raise the level of funding, he stressed that there is no intention to raise funds.